Aguia Resources Limited · ASX:AGR
Aguia Resources — Phosphates 2013, Monte Carlo
25 slides from Aguia Resources's conference presentation, Mar 28, 2013
Slide 1: Igneous Phosphate Rock in Rio Grande do Sul, Brazil
Igneous Phosphate Rock in Rio Grande do Sul, Brazil A Significant New Discovery in a Key Global Market For personal use only Phosphates 2013, Monte Carlo 27th March 2013 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: The fertilizer sector has not always been a target for explorers
The fertilizer sector has not always been a target for explorers For personal use only Little junior activity or incentives prior to 2006 – 1987 – 2006: Money made selling companies – Average phosphate rock price <US$50/t fob – Average DAP gross margins of ~US$11/t – Almost no funding for Juniors
Slide 4: The Americas, Africa, and Australia dominate the exchange-listed projects
The Americas, Africa, and Australia dominate the exchange-listed projects….. For personal use only North America D’Arianne Resources Glen Eagle Resources Europe / Asia Jourdan Resources Eurochem PhosCan Chemical Sunkar Resources Stonegate Agricom Talst Margad (P) Yara Australia / NZ Chatham Rock Pho
Slide 5: Juniors play a pivotal role in new discoveries
Juniors play a pivotal role in new discoveries.... For personal use only JUNIORS PROVIDE FOCUS: Able to focus on exploration and project development Able to move swiftly – no competing corporate distractions Able to raise money – provide investors with targeted investments with sizable potenti
Slide 6: The Process
The Process For personal use only Raise Capital Commissioning & Start-up Construction Complete Studies • Final NI 43-101 or JORC • Pre-feasibility Environmental • Full Feasibility Permitting • Detailed • EIA Report Engineering • Preliminary / Full Prove the Installation resource licences • Drilling
Slide 7: What are investors looking for?
What are investors looking for? For personal use only Project – Location – Resource Structure – Public vs. Private Taken together – Exchange = Value Management – Industry knowledge – Technical expertise – Public markets experience
Slide 8: Aguia Resources: An Introduction
Aguia Resources: An Introduction For personal use only ASX listed company (ASX: AGR) Focused on building a fertilizer production company in Brazil Currently have four projects in Brazil: 3 phosphate projects Rio Grande (Rio Grande do Sul) Lucena (Paraiba) Mata da Corda (Minas Gerais)
Slide 9: Why focus on Brazil? – Three main reasons
Why focus on Brazil? – Three main reasons For personal use only % Largest Phosphate Markets (% of World Total) 4th largest global phosphate 40 35 market 30 25 20 #1 15 #2 10 #3 #4 5 #5 0 China India USA Brazil Australia Data: IFA Import dependent: ~ 55% of Brazil’s phosphate (as P2O5) is Phospha
Slide 10: Rio Grande do Sul Projects – A New Phosphate Province
Rio Grande do Sul Projects – A New Phosphate Province For personal use only The potential for a new world class phosphate province in southern Brazil Aguia has been first mover in region Large landholding over 860 km2 TRES ESTRADAS Large resource base potential NEW DISCOVERY New discovery Tr
Slide 11: Três Estradas – the terrain
Três Estradas – the terrain For personal use only Railway line Três Estradas is in rolling open countryside, mostly scrub, with some light grazing Phosphate mineralisation at surface
Slide 12: Três Estradas: JORC Indicated and Inferred Resource
Três Estradas: JORC Indicated and Inferred Resource For personal use only Total JORC compliant Indicated and Inferred resource of 29Mt @ 4.3% P2O51 including higher grade oxide zone from surface of 1.6Mt @ 10.5% P2O52 Mineral Resource only covers 45% or 1.2 km of the more than 2.6 km of total mine
Slide 13: Cross section at Três Estradas: Section 1200
Cross section at Três Estradas: Section 1200 For personal use only Shallow Oxide Zone from surface to 30 metres depth1 From Surface Shallow oxide Oxide zone to 30m Base rocks: Carbonatite (blue in diagram) Amphibolite Fresh / Primary (green in diagram) Both meta- carbonatite and oxide benefici
Slide 14: Drilling completed at Três Estradas for the current resource
Drilling completed at Três Estradas for the current indicated and inferred resource1 For personal use only 1 See ASX Release of 28th February 2013
Slide 15: What does it look like?
What does it look like? For personal use only Sample of weathered Carbonatite with values up to 32% P2O5 Oxidised Carbonatite at Surface to ~ 30m Sample of Fresh Carbonatite Fresh Carbonatite from -30m
Slide 16: Três Estradas: Preliminary Beneficiation Results
Três Estradas: Preliminary Beneficiation Results For personal use only Initial metallurgical recoveries up to 83.4% and concentrate grades up to 36.0% P2O51 Results indicate the potential to produce a commercial concentrate using standard methods and reagents available in the market Further op
Slide 17: Excellent infrastructure access to markets
Excellent infrastructure access to markets For personal use only • Excellent infrastructure with good road, rail, power, port and services • Railway within the project that goes north and south to Brazil and southwest to Argentina and Uruguay. • Franchise owner is América Latina Logística. RIO GRAND
Slide 18: Significant logistical cost advantage to local producers of rock over imports
Significant logistical cost advantage to local producers of rock over imports For personal use only Suppliers of Phosphate Rock to Brazil Sustained logistics advantage for local producers of > $50/t Estimated Logistics Costs of Rock Suppliers to Brazil (US$/t) Volume Plant to Ocean Brazil Port Total
Slide 19: Rio Grande do Sul: Large exploration upside
Rio Grande do Sul: Large exploration upside For personal use only Potential for a world-class carbonatite province: more discoveries TRES ESTRADAS PHOSPHATE DISCOVERY PORTEIRA UNTESTED OPTION GROUND JOCA TAVARES (IAMGOLD) UNTESTED
Slide 20: There is evidence that the Três Estradas carbonatite extends
There is evidence that the Três Estradas carbonatite extends...... For personal use only Evidence suggests the carbonatite extends over 12km.... ..with Siilinjärvi as a comparison
Slide 21: Porteira target: PXRF and magnetic imaging
Porteira target: Portable x-ray fluorescence (PXRF) and magnetic imaging For personal use only
Slide 22: Três Estradas Development options
Três Estradas Development options For personal use only Phase 1: Near Term - Mine high grade oxide for cash flow to fund on-going development and Capex 2-3 years The Process – Internal Scoping commenced Mine rock, beneficiate by flotation Sell rock concentrate Phase 2: Longer Term – Large re
Slide 23: Lucena Project: Drilling Targets Resource Potential
Lucena Project: Drilling Targets Resource Potential For personal use only Lucena ■CPRM discovered shallow phosphate mineralisation up to 22% P2O5 in several deposits to the west ■Phosphate mineralisation is hosted by a limestone unit (Gramame Formation) that extends through project towards the east.
Slide 24: Summary
Summary For personal use only Proven carbonatite-hosted apatite in Rio Grande do Sul Initial 29M tonnes indicated and inferred resource at Três Estradas based on northern section only Expectation that the resource at Três Estradas will expand significantly when southern section is drilled Su
Slide 25: Enquiries
For personal use only ENQUIRIES: SIMON TAYLOR – Managing Director & CEO Telephone: +61 2 9247 3203 staylor@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR AGUIA RESOURCES LIMITED 25